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The Honolulu Advertiser
Posted on: Tuesday, August 1, 2006

Fewer Japanese tourists arriving

By Lynda Arakawa
Advertiser Staff Writer

Halfway through what will likely be another record-setting year for Hawai'i tourism, a disturbing trend has emerged.

As Mainland visitors keep Hawai'i's No. 1 industry on track to surpass last year's high mark of 7.46 million arrivals, Japanese tourists are avoiding the Islands in growing numbers.

Japanese arrivals were down 13.4 percent in June, the largest drop of the year, according to state data released yesterday.

Overall arrivals were up 2.2 percent for a total of 3.6 million in the first half of the year, but Japanese arrivals were down 8.8 percent through June at 667,147.

A drop in Japanese visitors shouldn't pose a problem except that Japanese spend more than their Mainland counterparts and give the state an alternative source of income in times when Mainland tourism weakens.

The decline is especially evident among the high-end retailers that fill Waikiki and Ala Moana Shopping Center.

"It's slower than last year," said an employee at LeSportsac in Waikiki. "Before, it was always busy, but nowadays it's slow."

Still, these are boom times for most tourism companies.

"We're very busy," said Tammy Becker, owner of Happy Trails Hawaii Ltd., which offers horseback tours on the North Shore. "Summertime is a very good time for us."

Total visitor arrivals for June stood at 670,257, up 2.9 percent compared with June last year. Visitor expenditures grew 8.7 percent to set a June record of nearly $1.1 billion.

Tourism officials say Japanese visitors want to come here, but several things are discouraging them:

  • Fuel surcharges can add as much as $200 per ticket from Japan.

  • There are fewer scheduled air seats from Japan.

  • The high demand from Mainland tourists combined with a smaller hotel-room supply also have made it hard for Japanese — who typically book trips later than U.S. travelers — to find rooms.

  • Japanese travelers are venturing to less-traditional destinations, such as Southeast Asia.

    JAPAN INTEREST STEADY

    The Japanese are still interested in Hawai'i, said Yujin Yaguchi, associate professor at the University of Tokyo, who has written about Japanese tourism to Hawai'i.

    "I don't feel that the interest in Hawai'i among Japanese people is waning at all," he said. "You look around, you see all these magazines and television programs that focus on Hawaiian history, culture, aspects of Hawaiian life. ... It's just that this increasing trend in diversification of travel makes it very difficult to have these people concentrate on Hawai'i only. They might come to Hawai'i one year and then they may go to Thailand next year, and then somewhere else and then come back to Hawai'i."

    There's little Hawai'i tourism officials can do to counter many of the factors keeping Japanese away, said Rex Johnson, Hawai'i Tourism Authority president and CEO, who expects Japanese arrivals to recover eventually.

    "Demand for Hawai'i is as high as it's always been," Johnson said. "We've got to keep refreshing the destination and making sure that the demands stay solid, and if we can do that, when there are rooms available and when there are airline seats available, then everything will come back."

    SIGNS FOR RETURNS

    There are some hopeful signs, Johnson said.

    JTB Corp., Japan's biggest travel agency, is partnering with Japan Airlines to operate up to 100 charter flights to Hawai'i beginning in October, he said. "That's a big help."

    A recent survey released by JTB Corp. forecast a 1.4 percent increase in Japanese tourists to Hawai'i between July 15 and Aug. 31, with the help of additional charter flights. But daily passenger figures indicate a decline in Japanese visitors for July, and major travel agents have reported nearly flat or slight growth for August.

    Japanese spend $270 per person per day, compared with an average $175 per day for all visitors.

    Japanese visitors added $1 billion to the state's economy in the first six months of the year, down 2.2 percent from a year earlier.

    Despite the downturn in the Japanese market, tourism in Hawai'i is still growing.

    "For each of the past three months, we have realized positive growth in total visitor days and expenditures," said state tourism liaison Marsha Wienert. "Gains in visitor spending continue to help keep our robust state economy moving forward."

    Becker, of Happy Trails, said her business was up slightly compared with the strong gains made last year. The company would be on par for a double-digit increase so far this year had it not been for the downpours that hit the Islands in March, she said.

    So far this year, total visitor arrivals are up 2.2 percent, putting the industry on track to beat last year's record 7.46 million tourists. Spending is up 7 percent.

    Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.

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